SolarEdge Earnings Top Estimates but the Stock Is Falling

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SolarEdge Technologies gave analysts plenty to smile about in its fourth-quarter earnings report. Investors, however, weren’t as happy.

Guggenheim analyst Joseph Osha reiterated his Buy rating on the stock and raised his price target to $452 from $409. “Improving margins, good growth, attractive valuation—what’s not to like?” he wrote in a research note Tuesday, in which he also highlighted the company’s strong quarterly performance.

SolarEdge

(ticker: SEDG), the maker of solar panels and inverters, posted fourth-quarter revenue of about $891 million and earnings per share of $2.86, while analysts had expected revenue of about $880 million and earnings of $1.54 a share, according to FactSet. 

The stock was sliding 4.6% to $296.50.

J.P. Morgan analyst Mark Strouse was optimistic on the company, maintaining his Overweight rating and increasing his price target on the stock to $361 from $358. 

“SEDG is one of the few solar stocks that is consistently profitable, generates cash, and has a solid balance sheet,” Strouse wrote. “We believe further penetration of the global solar market and expansion into new verticals should allow the stock to outperform our solar coverage.”

Another stock in the same orbit,

First Solar

(FSLR), was downgraded to In Line from Outperform by analysts at Evercore ISI, and shares fell 1.5%.

Write to Emily Dattilo at [email protected]